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With this year's crop of packages, computer-based tax preparation is evolving from a once-a-year, self-contained process to a year-round task, with fast-growing extensions into tax, investment, and even retirement planning.

Again this year we've gathered versions of the three leading tax software packages2nd Story Software's TaxACT Deluxe, TaxCut Platinum From H&R Block, and Intuit's TurboTax Premierto see how each performs and how they compare with one another. We found that the products have grown in several directions. All the old stuff's there: your choice of direct form entry or a guided interview that fills in the forms in the background, tons of help and guidance along the way, a final review of your return, and the option to print and mail your return or file electronically.

If you're currently doing your taxes manually, or if you're using a professional but want to take a crack at it yourself, we strongly recommend you give one of these programs a try. They simplify and speed up the torturous task tremendously, doing all of the required calculations and helping to ensure that you account for all of the appropriate income and deductions.

This year's programs, though, have added extra help with complex tax issuesinvestment gains/losses being the most notablein the form of expanded interview topics. Import options, which bring in W-2 and investment information directly from leading payroll- and financial-services firms, are deepening.

The programs are also expanding their tracking and guidance tools, making preparing for your taxes (as opposed to straight tax preparation) a year-round process. And TaxCut Platinum and TurboTax Premier offer ways to get help from a pro immediately as you work on your return, or a sanity check when you've completed it.

Kathy Yakal has been annoying computer magazine editors since 1983, when she got her first technology writing job because she tagged along with her ex-husband on a job interview. She started freelancing and specializing in financial applications when PCs became financial tools for consumers and small businesses (after a stint at a high-end accounting software company). She’s written for numerous publications over the years, and about the only one that’s survived her besides PC Magazine (where she started writing in 1993) is Barron’s. When she...
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